A function of innovation systems approach for analysing the roles of intermediaries in
eco-innovation
Wisdom Kanda
1*, Pablo del Río Gonzaléz
2, Olof Hjelm
1and Dzamila Bienkowska
31
Environmental Technology and Management, Department of Management and Engineering,
Linköping University, SE-581 83 Linköping, Sweden.
2
Institute for Public Policies and Goods, Spanish Council for Scientific Research (CSIC),
C/Albasanz 26-28, 28037 Madrid, Spain.
3
Project, Innovation and Entrepreneurship, Department of Management and Engineering,
Linköping University, SE-581 83 Linköping, Sweden.
*Corresponding author: E-mail address: wisdom.kanda@liu.se Tel.: +46 (0)13281696
Abstract
This article draws from two bodies of literature, innovation intermediaries and technological
innovation systems, to develop an approach for analysing the functions of intermediaries in
eco-innovation. The link between the functions of innovation intermediaries and the functions of
technological innovation systems has seldom been explicitly established in the scientific discourse
and thus this article contributes to theoretical development in both literatures. To the technological
innovation systems literature, this article addresses the lack of attention to the functions of
innovation intermediaries who are a critical part in the formation of networks and also contribute to
a number of innovation system functions. To the innovation intermediary literature, the functional
approach advocates for a synthesis and consensus building in the literature regarding intermediary
functions in view of the several redundancies and ambiguities on the subject matter. Empirical
operationalization of the analytical approach including methodological choices from case studies in
Region Scania, Sweden and North Rhine Westphalia, Germany are also discussed. The results of our
analysis show that the functions of the innovation intermediaries are particularly relevant for the
overall goals of an innovation system as compared to the configuration of intermediary actors.
Particular challenges with a functional approach in this context include the difficulties of establishing
a causal relation between the support functions of intermediaries and eco-innovation outcomes in
firms.
Keywords: Analytical approach; Technological Innovation Systems; Innovation; Systems approach
1
Introduction
There is increasing demand from policy makers and consumers for firms to develop, diffuse or adopt
innovations that create win-win situations which maintain or improve economic competitiveness
while securing environmental sustainability. To this end, eco-innovations, broadly defined as
innovations that improve environmental performance (Carrillo-Hermosilla et al., 2009) are essential.
Despite the potential benefits for firms engaged with eco-innovations, for example cost savings
through increased energy efficiency, realizing competitive advantage through successful new
products or services, eco-innovation can be stifled by market failures (Jaffe et al., 2005) as well as
system failures (Bleda and del Río, 2013). To tackle some of these challenges, firms often need
linkages with external organizations such as universities, business development organizations,
incubators, financers and private consultants to get hold of and exploit essential resources (e.g.
knowledge, networks, finances)to effectively eco-innovate (Hjelm, 2011). These external resources
complement firms’ internal capabilities such as R&D activities, financing, top-management
commitment and employee skills in eco-innovation. Several previous studies highlight the relevance
of both internal and external resources for eco-innovation, with a few pointing to the particular
intensity of external linkages and resources for eco-innovation compared to other innovations
(Cainelli et al., 2015). This is inferred from the presence of interdependencies on knowledge, skills
and resources as well as the need to complement internal firm resources with competences from
different domains during eco-innovation. We refer to such external organizations as intermediaries
1to connect to previous literature even though we are aware that some scholars refer to such
organizations as third parties, intermediary firms, bridgers, brokers, superstructure organizations and
knowledge intensive business services (KIBS).
Some attention has been given to the role of such intermediaries in the innovation literature (see
e.g.Howells, 2006; Klerkx and Leeuwis, 2008; Klewitz et al., 2012). Howells (2006) through a literature
review and case studies in the United Kingdom developed a typology for the different roles of
intermediaries in innovation. Klewitz et al. (2012) analysed an intermediary based program
-“Ecoprofit®” and intermediaries working with this program with the aim to introduce the concept of
sustainable development through eco-innovation among German manufacturing small and
medium-size enterprises (SMEs). Other scholars have analysed intermediaries in particular sectors such as
agriculture (Klerkx and Leeuwis, 2008), healthcare (Boon et al., 2011) and energy supply (Kivimaa,
2014) with an overarching interest in understanding and improving their intermediation roles in
innovation. However, researchers and policy analysts face different challenges when it comes to
analysing the roles of intermediaries in eco-innovation. First there is very little scientific studies on
the particular topic (Kanda et al., 2014) and second, there are several redundancies and confusions
regarding the functions and types of innovation intermediaries in the literature (Klerkx and Leeuwis,
2008). This can be partly attributed to the different terminologies used by scholars to describe
intermediation functions, the different types of intermediaries and the contexts within which they
operate, not forgetting the broad nature of eco-innovation. These limitations make it difficult to
provide robust recommendations for intermediaries and policy makers.
Thus critical questions for practitioners and researchers include the analysis of options which
contribute to improve the support functions of intermediaries in order to foster eco-innovation
(Klewitz et al., 2012). Previous literature on innovation intermediation provides relevant starting
points for discussing such questions; however to further such discussions, advancements are needed
in analytical approaches and conceptual frameworks. In this case, the innovation intermediary
literature could benefit from literature such as the technological innovation systems which has
gained prominence in the study of innovation processes and their related policy over the past three
1
decades. A core argument of the innovation systems approach and, in particular, the technological
innovation systems (TIS) approach is that, the direction and outcomes of the innovation process are
influenced by an interaction between private firms, other types of organizations and institutional
structures (Markard and Truffer, 2008a). A key advancement in this approach is the emphasis on
system functions as a basis for identification of system weaknesses and policy recommendations
(Bergek et al., 2008). To the best of our knowledge, the role of intermediaries in eco-innovation has
not been analysed using a (TIS) approach, which makes explicit the dynamics between system
functions and policy recommendations while uncovering the structure, functions and weaknesses in
an innovation system.
Motivated by these limitations and opportunities, the aim of this article is to contribute to the
innovation intermediation and technological innovation systems literature in at least two ways: (1) to
present an approach for analysing the roles of intermediaries in eco-innovation (2) to illustrate the
operationalization of the analytical approach including methodological considerations based on
empirical case studies. Accordingly, the article is structured as follows. In Section 2, we discuss
previous literature on innovation intermediaries and technological innovations systems, providing a
connection between them as a basis for developing our analytical approach. In Section 3, we describe
in steps in the analytical approach. In Section 4, we illustrate the operationalization of the analytical
approach using case studies in Sweden and Germany. Section 5 offers conclusions and further
research.
2
Intermediaries and Technological Innovation Systems
2.1
The literature on intermediaries in eco-innovation
In the context of this article, we refer to intermediaries as organization that assists firms in the
eco-innovation process by providing external impulse, motivation, advice and other specific support often
by acting as an agent or broker between two or more parties. Previous literature on intermediaries
can be grouped into various categories. On one side of the spectrum are studies that focus on
intermediaries in innovation in general (e.g. Boon et al., 2011; Howells, 2006), and on the other side
are studies dealing with intermediaries in relation to particular category of innovations e.g.
eco-innovation (Klewitz et al., 2012). Under the umbrella of eco-eco-innovation, previous studies have
analysed intermediaries engaged in sustainable system transitions (Klerkx and Leeuwis, 2008; van
Lente et al., 2003) and energy systems transition (Kivimaa, 2014). These previous studies contain
several roles of intermediaries in (eco)-innovation which could contribute to the functions of
innovation systems in the technological innovation systems literature even though the connection
between these streams of literature is yet to be established.
Narrowing down, conventional knowledge suggests that SMEs are important candidates for
developing and diffusing eco-innovations(Keskin et al., 2013) based on their particular characteristics
such as informal ways of communication, flexibility and lean organizational structures. However such
firms face challenges such as addressing multiple goals in innovation (e.g. environmental and
economic ambitions), difficulty in creating customer value based on eco-innovations and inability to
internalise all elements of the innovation process (Keskin et al., 2013). These particularities aside,
eco-innovation can be a complex and challenging activity for many SMEs due to resource constraints
in terms of personnel, knowledge and financial capital (Klewitz et al., 2012). Other managerial and
structural challenges mean that sometimes eco-innovation and sustainability issues are dealt with in
a marginalised way with little or no personnel commitment, and an ad hoc informal approach(Noci
and Verganti, 1999; Scozzi et al., 2005). A small company will often lack some the competence
needed to tackle the challenges related to eco-innovation (Hjelm, 2011). Hence, linkages are needed
with external actors to get hold of the required resources and capabilities to exploit eco-innovation
in an effective way (Hjelm, 2011; Keskin et al., 2013; Klewitz et al., 2012) not forgetting the
importance of internal firm resources (Cainelli et al., 2015).
Cooperation with external public, private and non-governmental actors is deemed important to
increase the innovative capacity of SMEs (Cainelli et al., 2015; Klewitz and Hansen, 2013).
Cooperation has been shown as a main driver for eco-innovation in the literature (see, e.g., de
Marchi, 2012; del Río et al., 2013). In particular, consistent government support is regarded as a
significant enabler for developing and diffusing eco-innovations (Boons et al., 2013; Horbach,
2008).This can be partly attributed to the limited interest of private actors to act as catalyst for
sustainability transitions(Turnheim and Geels, 2012) due to both market and system failures (Bleda
and del Río, 2013; Jaffe et al., 2005; Rennings, 2000). Thus, government affiliated intermediaries have
been found to provide an alternative complementary role to business-based intermediaries whose
actions are typically profit-driven (Kivimaa, 2014). Previous literature identifies financial institutions,
universities, incubators, public funders, cluster initiatives, local authorities and business development
organizations as important governmental actors which could assist firms to achieve their desired
objectives in eco-innovation (del Río González, 2005; del Río et al., 2013; Fichter et al., 2013). The
overarching objective of innovation intermediaries is to assist firms in the development, diffusion
and use of (eco)-innovations. The support activities offered by such organisations can be divided into
two broad categories as ‘hard’ and ‘soft’ or configuration-oriented and process-oriented support
respectively (Norrman, 2008). The hard support includes provision of infrastructure, proximity to
universities and science parks, and other in-kind funding. The soft kinds of support include business
advice, coaching, education and networking activities. However, there are few literatures which
attempt to provide a comprehensive typology on the different intermediation support functions in
innovation. Howells (2006) lists ten functions of intermediaries in innovation as: foresight and
diagnostics; scanning and information processing; knowledge processing and
combination/recombination; gatekeeping and brokering; testing and validation; accreditation;
validation and regulation; protecting the results; commercialisation; evaluation of outcomes. These
functions relate to some of the functions of innovation systems identified in the technology
innovation system literature which is the focus of the next sub-section.
2.2
Technological Innovation Systems (TIS)
The systems of innovation (SI) approach (see Carlsson et al., 2002 for an overview) stresses that
innovations are not developed and implemented in isolation but within a technological and
socio-cultural context. It focuses on the importance and interdependencies of actors, networks,
institutions, cumulative learning processes and spatial and technological characteristics (Edquist,
2005). It adopts a holistic perspective and considers phenomena such as path dependency, lock-in,
interdependence, non-linearity and co-evolution (Edquist, 2005; Markard and Truffer, 2008b). This
approach can inform how innovation occurs in relation to particular technologies, industrial sectors
and specific national contexts, what system failures may be occurring and how innovation may be
influenced by incentives and policies (Foxon and Andersen, 2009).
Following Unruh (2000, p. 819), technological systems are defined as “inter-related components
connected in a network or infrastructure that includes physical, social and informational elements”.
An innovation system consists of three elements (Malerba, 2005; Woolthuis et al., 2005): technology
and related knowledge and skills, networks of actors and institutions. Networks of actors develop
and implement new knowledge and technology, within their institutional context. They are necessary
to bring about substantial shifts in interconnected technologies (Tsoutsos and Stamboulis, 2005). For
an innovation system to be successful in developing and implementing technologies, these three
building blocks, which coevolve in time, need to be aligned.
This approach has already been applied to analyse the emergence and/or uptake of eco-innovations,
particularly in the realm of renewable energy systems (see Foxon et al., 2005; Jacobsson, 2008;
Jacobsson and Bergek, 2004; Walz and Schleich, 2009; Åstrand and Neij, 2006). These papers stress
that a shift to renewable energy technology systems is a complex process which involves changes in
the aforementioned elements of an innovation system. They identify the system failures related to
the development, commercialisation and diffusion of renewable energy technologies.
The SI tries to cope with some of the drawbacks of the conventional perspective such as a market
approach, which has been much criticised for its conceptualisation of technological change. The
critics go in three directions. The systemic approach provides corrections to those criticisms and
suggests policy implications that are different from (although not necessarily contradictory to) those
derived from the conventional approach:
1) Feedbacks between stages. In particular, innovation and diffusion are not sequential phases, but
learning and future innovations depend on experiences made during market diffusion. i.e., the
creation of a market for renewable technologies feeds back into investments in R&D.
2) Path dependency and lock-in. One drawback of studies based on mainstream environmental
economics is the fact that they do not look at system changes and interdependencies, although such
system changes are necessary to reach long-term emission reduction goals (Rogge et al., 2011). In
contrast, the systemic perspective acknowledges that barriers to renewable energy are systemic
(also termed system failures, see (Nill and Kemp, 2009)). These systemic barriers lead to lock-in
through a path-dependent process driven by technological and institutional internal returns to scale.
Technologies are not only linked to other technologies, but are also interrelated with the cultural and
institutional aspects of their environment (Maréchal, 2007). “Carbon lock-in” has been used to
denominate the persistent dominance of high-carbon technologies (in spite of the existence of
low-carbon ones)
2. Unruh (2000, p.817) defines carbon lock-in as the “interlocking technological,
institutional and social forces that can create policy inertia towards the mitigation of global climate
change”. This lock-in occurs through a “path-dependent process driven by technological and
institutional increasing returns to scale”. Dynamic economies of scale and learning effects are a
major source of lock-in. R&D investments and diffusion provide a source of improvement and cost
reductions for existing technologies. The later effect takes place because diffusion allows
technologies to benefit from learning effects and dynamic economies of scale. Emerging, more
2
A stream of the economic literature on climate change mitigation has applied an evolutionary approach with the aim to emphasize the inertia in current technological systems (del Río and Unruh, 2007; Foxon et al., 2005; Kemp, 1996; Maréchal, 2007; Rip and Kemp, 1998; Unruh, 2000, 2002).
expensive technologies may fall into a vicious circle: they are not adopted because they are too
expensive and they are too expensive because they are not adopted.
3) Barriers to technological change are multifaceted and the price factor is only one of the factors
affecting technological changes. Technological change is endogenous to an economic system in
which there are both inducement and blocking mechanisms. Changes in relative prices are only one
of the inducement mechanisms. In addition to the demand and technology factors, this approach
underlines the importance of several factors (characteristics of innovation, actors, networks and
institutions, including regulations) (Suurs and Hekkert, 2009). These factors influence each other,
highlighting the importance of feedback mechanisms and cumulative causation processes. Therefore,
price signals are necessary albeit not sufficient to encourage innovation in new technological
systems.
The SI approach has been applied at the national, regional and the sector levels. A particularly
promising perspective is the technological innovation system (TIS) perspective. A TIS is defined as a
dynamic socio-technical system of agents that, by interacting within a particular institutional
infrastructure, are involved in the development, diffusion, and use of a specific technology (Carlsson
and Stankiewicz, 1991). A TIS approach makes explicit the relationships between innovation
dynamics and policy.
The assessment in terms of system functions is one of the main approaches of the systems of
innovation literature and the TIS in particular. Other innovation system studies have placed more
emphasis on structural analyses (Carlsson et al., 2002; Jacobsson and Johnson, 2000) and have been
criticized for being insufficient in understanding innovation and technology change dynamics
(Hekkert et al., 2007). The authors argue that, in order to understand the determinants of change,
insights in the present (static) structure of innovation systems is not enough but rather an
understanding of the activities that take place within the system.
The functional perspective in TIS centres on key dynamic processes and properties of TIS (functions)
that contribute to the development and performance of a TIS in order to establish a link between
weaknesses in these processes and policy action (Bergek et al., 2015; Bergek and Jacobsson, 2003;
Jacobsson and Johnson, 2000; Negro et al., 2007) The functional perspective allows researchers to
look into TIS in eco-innovations and their functions, identify specific weaknesses of TIS and provide
useful lessons for policy makers to tackle the barriers to eco-innovation. Indeed, the effect of
regulation on innovation depends on how regulation influences those functions.
Different innovation systems can be assessed and compared in terms of the functions they fulfil in
order to derive policy recommendations to support the development of a specific technology
(Hekkert et al., 2007; Negro et al., 2007). Functions are emergent properties of the interplay between
actors and institutions (Markard and Truffer, 2008b). The functions approach identifies those
properties of a technological innovation system that are needed in order to successfully introduce
sustainable energy technologies (see Hekkert and Negro, 2009). In this paper, we use the
operationalization of the functional approach made by (Bergek et al., 2008)and (Hekkert et al., 2007)
(see table 1).
Function Description
1. Knowledge development and diffusion.
This function captures the breadth and depth of the current knowledge base of the TIS, and how knowledge is diffused and combined in the system. Various types of knowledge serve as inputs for innovation, including R&D and learning effects. 2.- Guidance of
the search.
This refers to activities that can affect the visibility of specific needs among technology users and the incentives for the organizations to enter the TIS. 3.-
Entrepreneurial experimentation
Entrepreneurial experimentation implies a probing into new technologies and applications, with successes and failures.
4.- Market formation
Market formation normally goes through three phases with quite distinct features: nursing, bridging and mass markets (see text).
5.- Legitimation Legitimacy refers to social acceptance and compliance with relevant institutions. The new technology needs to be considered desirable by relevant actors in order for resources to be mobilized, for demand to form and for actors in the new TIS to acquire political strength. This process is complicated by competition from adversaries defending the existing TIS. The purposeful creation of legitimacy by lobbying networks counteracts resistance to change.
6.- Resource mobilization
This refers to the extent to which the TIS mobilizes competence/human capital, financial capital and complementary assets in order to make the various processes in the innovation system possible.
Source : adapted from (del Río and Bleda, 2012) based on (Bergek et al., 2008; Hekkert et al., 2007)
Previous research has demonstrated that the functions approach is well-equipped to carry out
comparative policy research (Coenen et al., 2010). The TIS approach has also received several
criticisms; see (Markard et al., 2015) for a discussion on relevant responses and improvement
options. The focus of policy in this framework is hence to identify and address problems that prevent
the fulfilment of functions and to intervene to make sure that they are fulfilled. The lower the
maturity of technologies, the greater the requirements for the fulfilment of system functions. More
novel innovations require greater change in all system functions.
System functions reinforce each other over time, thereby resulting in virtuous cycles in cumulative
causation processes (Hekkert et al., 2007; Jacobsson and Bergek, 2004), which are needed for new
technologies to penetrate the market and for the TIS to actually form (Hekkert and Negro, 2009;
Suurs and Hekkert, 2009). Cumulative causation suggests that system functions may reinforce each
other over time, thereby resulting in a virtuous cycle (Hekkert et al., 2007; Jacobsson and Bergek,
2004). The diffusion of eco-innovations into the incumbent production systems requires virtuous
circles to be established between the different functions (Hekkert and Negro, 2009; Suurs and
Hekkert, 2009). This is more relevant the more radical these innovations are.
Market formation has been presented as a central function in the development of a TIS. Market
formation sets in motion learning processes and creates the aforementioned virtuous cycles between
functions, actors and stages of technological change. Policies supporting eco-innovation directly
affect the market creation function, which indirectly affects the other functions.
Market formation consists of three different phases. In the very early phase, “nursing markets” need
to evolve so that a “learning space” is opened up, in which the TIS can find a place to form. The
technology is still developing (i.e., immature) and the size of the market is very limited. Learning, in
general terms, refers to building new competencies and establishing new skills, and innovation is
rooted in various forms of learning (Wieczorek et al., 2010). There are three main learning processes,
learning-by-doing (LBD), learning-by-using (LBU) and learning-by-interacting (LBI)
3. The later stresses
the role of networking, which helps actors to access new sources of ideas and increase their
innovative capabilities (Wieczorek et al., 2010). The development of a broad and aligned network of
niche actors in the experiment (firms, users, policymakers, entrepreneurs, etc.) is a success factor for
governance of niche experiments (Raven, 2005). The review of existing policy insights in the
literature on TIS reveals the importance of learning in networks of stakeholders (Coenen et al 2011).
Instruments should try to stimulate these interactions.
This nursing market may give way to a “bridging market”, which allows for volumes and market
interactions to increase and for an enlargement of the TIS in terms of number of actors. The
adaptation processes initiated in the nursing stage start to consolidate, and users begin to adopt and
use the new technology. Finally, in a successful TIS, mass markets (in terms of volume) evolve
(Bergek et al., 2008). In this stage, the technology becomes institutionalised as it is widely applied by
many users (Dewald and Truffer, 2011).
Poor connectivity (networking) between actors is identified as a blocking mechanism in
eco-innovations with respect to legitimacy. This has been the case at least in the energy sector with
respect to renewable energy technologies (Negro et al 2010). Interactions between actors are crucial
both as a source of knowledge exchange, learning and innovation and as a source of formation of
advocacy coalitions and, thus, legitimacy (see Wieczorek et al., 2010). Therefore, the extent to which
a given policy favours a diversity of actors and new entrants into the TIS is crucial to enhance LBI
effects and to strengthen the power of emergent advocacy coalitions between actors, including
producers, equipment manufacturers, public decision-makers, financial institutions, consumers and
NGOs, that, in turn, enhance the legitimacy of support (i.e., function 5).
New technologies and new actors gradually change the institutional environment in which they are
embedded. Advocacy coalitions result from the sequential interaction between support, market
creation, stages of technological change and actors. Indeed, new entrants and coalitions between
different types of actors have been shown to be crucial in the emergence of new technologies within
TIS (Meyer, 2007; Walz and Schleich, 2008) and in the social acceptability and political feasibility of
policies.
3
Learning-by-doing (LBD) (Arrow, 1962) refers to the repetitious manufacturing of a product leading to improvements in the production process. Learning-by-using (LBU) are improvements in the technologies as a result of feedback from user experiences into the innovation process (Rosenberg, 1982). Learning-by-interacting (LBI) takes place as a result of the network interactions between actors(Junginger et al., 2005; Lundvall, 2009).
2.3
Linking intermediaries to the functions of innovation systems
As discussed in the previous section, the literature on innovation systems and, particularly,
technological innovation systems (TIS) considers several functions which an innovation system should
perform in order to stimulate the development, diffusion and use of technologies (see Bergek et al.,
2008). Although the TIS literature identifies actors, networks and institutions as constituting an
innovation system around a particular technology, the literature does not explicitly recognise
innovation intermediaries as key actors even though the formation of networks between various
actors and institutions, resource mobilization and market formation among others requires some
intermediation. Arguably, the TIS approach does not explicitly consider intermediaries as main
facilitators of networking leading to innovation in general and eco-innovation in particular. More
specifically, so far there has been little interaction between the two bodies of literature i.e. the
technological innovation systems and the innovation intermediaries. Establishing such a link would
allow us to highlight the contributions of innovation intermediaries to several of the innovation
system functions identified in the TIS literature. The connection can be based on the fact that the
“functions” play a crucial role in both literatures. Howells (2006) identifies ten functions of
intermediaries in innovation which could contribute to some of the functions of innovation systems.
Even though, we anticipate the functions of innovation intermediaries to share several similarities to
the functions of intermediaries for innovation, we also expect some particular functions for
eco-innovation after empirically applying our analytical approach. This is due to the unique characteristics
of eco-innovation such as its positive environmental impact, the influence of regulation and the
double externality problem (del Río et al., 2010; Rennings, 2000). In table 2 below, we combine
previous innovation intermediary literature reviewed in section 2.1 with the functions of innovation
systems discussed in section 2.2.
Table 2. Functions of innovation intermediaries related to functions of innovation systems
Source: Own elaboration based on (del Río and Bleda, 2012) and (Howells, 2006)
Innovation system functions Innovation Intermediary functions Knowledge development and diffusion Guidance of the search Entrepreneurial experimentation Market formation
Legitimation Resource mobilization
Foresight and diagnostics
Foresight, forecasting and technology roadmapping Scanning and
information processing
Information scanning and identification and selection of potential collaboration partners Knowledge processing and combination Helping to combine knowledge of two or more partners including the generation of in-house knowledge Gatekeeping and brokering
Negotiating and deal making
Testing and validating Testing, diagnostics,
analysis and inspection. Piloting and prototyping. Scale-up Testing, diagnostics, analysis and inspection. Piloting and prototyping. Scale-up Accreditation Specification setter or providing standards advice. Formal standards setting and verification. Voluntary and de facto standards Validating and regulation Formal regulation. Informal arbiter between different groups Protecting the results
Commercialisation Market research and business planning. Support in the selling and commercialis ation process. Early stage capital Evaluating of outcomes
From table 2, we can see how intermediary functions relate to innovation systems functions. A
concentration of the innovation intermediary functions can be observed to be related to (i)
legitimation (ii) resource mobilization and (iii) knowledge development and diffusion, innovation
system functions. Through this link between innovation intermediaries and the TIS literature this
article contributes to both the TIS literature and the innovation intermediary literature. Regarding
the TIS literature, this article addresses the framework’s lack of attention to the functions of
innovation intermediaries which are a critical part of an innovation system and contribute to several
system level functions using firm intermediation. To the innovation intermediary literature, the
functional approach adopted in this article advocates for consensus building and a synthesis of
intermediary functions as has been done for the TIS literature.
3
The analytical approach
In this section, we elaborate on the analytical approach we have developed to analyse the functions
of intermediaries in eco-innovation. An overview of the main steps of our analytical approach is
presented in Figure 1. The analytical approach is inspired by a scheme of analysis in the technological
innovations systems literature for analysing the functional dynamics of technological innovation
systems (see Bergek et al., 2008), together with innovation intermediary literature (e.g Howells,
2006) and eco-innovation literature (e.g Carrillo-Hermosilla et al., 2009; OECD, 2009). As depicted in
Figure 1, the first step involves defining the focus of the analysis based on the study’s aims and
objectives. Thereafter, key intermediaries relevant for the study’s focus are identified including their
networks and institutions backing them. In order to understand the roles of the intermediaries in
eco-innovation, step 3 focuses on their support functions which cover their actions and activities
assigned to or required of them in their support of firms engaged in eco-innovation. Since an end
goal of the analytical approach is to provide practical recommendations for intermediaries and policy
makers, an assessment of the support functions is prioritised in step 4. Based on the assessment
outcomes, step 5 discusses potential recommendations including identification of best practices. The
following sub-section provides an elaboration of the various steps including methodological
3. Mapping support functions of intermediaries 4. Assessing support functions for eco-innovation 5. Recommendations for intermediaries and
policy makers 1. Defining the study focus 2. Mapping key intermediaries